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Bosses who recklessly mismanage pension funds face seven years in jail under a clampdown due to be unveiled by Amber Rudd (pictured)

Now a new offence to ‘wilful or reckless behaviour in relation to a pension scheme’ will be unveiled by Ms Rudd amid a review of The Pensions Regulator’s powers.

Company chiefs deemed to have allowed deficits to escalate to unsustainable levels, risk jobs through chronic mismanagement or criminally steal from company pension pots will face ‘the full force of the law’.

A Whitehall source said ‘tycoons who think they can get away with their hands in the till will learn the hard way’.

Since 2015, the Insolvency Service has applied to the courts to wind up 24 companies that have carried out pension misuse. Some 3,750 victims lost £202 million worth of contributions.

Last night, Labour called for Green to be stripped of his knighthood amid the continuing furore about his behaviour.